MOSTLY AI raises $25 million to further commercialize synthetic data in Europe and the US Posted on : Jan 11 - 2022

Austrian synthetic data startup MOSTLY AI today announced that it has raised a $25 million Series B round. British VC firm Molten Ventures led the operation, with participation from new investor Citi Ventures. Two existing investors also returned: Munich-based 42CAP, and Berlin-based Earlybird, which had led MOSTLY AI’s $5 million Series A round in 2020.

Synthetic data is fake data, but not random: MOSTLY AI uses artificial intelligence to achieve a high degree of fidelity to its clients’ databases. Its data sets “look just as real as a company’s original customer data with just as many details, but without the original personal data points,” the company says.

Talking to TechCrunch, MOSTLY AI CEO Tobias Hann said that the company plans to use the proceeds to push the boundaries of what its product can do, grow its team and gain more customers both in Europe and in the U.S., where it already has offices in New York City.

MOSTLY AI was founded in Vienna in 2017, and the General Data Protection Regulation (GDPR) was implemented across the EU one year later. This demand for privacy-preserving solutions and the concomitant rise of machine learning have created significant momentum for synthetic data. Gartner predicts that by 2024, 60% of the data used for the de­vel­op­ment of AI and an­a­lyt­ics projects will be syn­thet­i­cally gen­er­ated.

MOSTLY AI’s typical clients are Fortune 100 banks and insurers, as well as telcos. These three highly regulated sectors drive most of the demand for synthetic tabular data, alongside healthcare.

Unlike some of its competitors, MOSTLY AI hasn’t put its focus on healthcare in the past, but it could change. “It’s certainly something that we are watching closely and we are actually starting some pilot projects this year,” the CEO said. View More